Fidelity Asian Values plc (LON:FAS) monthly factsheet for June 2026.
Portfolio Manager Commentary
The Trust’s NAV rose 6.5% during the 12-month period ended 30 June 2026, underperforming its reference index which returned 26.0%. The Trust’s share price increased by 10.1% over the same period.
Our process is driven by owning good businesses run by management teams we trust and owning them only when we have ample margin of safety – this often leads us to take contrarian positions as it is easier to find undervalued businesses in such areas of the market. Consistent with this philosophy, the portfolio has limited exposure to Taiwan, where several AI-related companies we do not own continued to rise despite valuations that we considered elevated, and this weighed on performance. In our view, investor capital has increasingly flowed into the broader AI theme without sufficiently distinguishing between genuine long-term beneficiaries and lower-quality businesses with weaker competitive advantages. Indonesia also remained one of the least favoured markets by investors. From a sector perspective, stock selection within financials and information technology weighed on performance.
Of late, investors seem to be rotating out of growth stocks and into value names in the Asian small-cap space. We believe this trend may continue, as small-cap value stocks remain at a significant discount to small-cap growth stocks in Asia. Overall, the Trust was overweight consumer discretionary, financials, consumer staples and energy. At a country level, it was overweight China, Indonesia and Australia.
Fidelity Asian Values Plc (LON:FAS) provides shareholders with a differentiated equity exposure to Asian Markets. Asia is the world’s fastest-growing economic region and the trust looks to capitalise on this by finding good businesses, run by good people and buying them at a good price.
